Florida's insurance report card: A+

Auto and Home Insurance rates have been exploding over the last 5 years along with increased home prices, Category 4-5 Hurricanes and Insured Losses. Inflation over the last 5 years has increased the Median Home price nationwide from $294,000 to $425,000, an 45% increase; has home insurance cost increased 45% too? Nationwide, average home insurance costs have increased 7.5% just this past year.

In Florida, unscrupulous contractors and plaintiff attorneys were also jacking up insurance claim costs. Insurers were inundated by lawsuits, causing many to fail or flee the market. The Florida state-created Citizens Property Insurance Corp. became the state's biggest property insurance. Does any of this sound familiar?

In 2022 Florida decided to do something about it, and in early 2023 its Legislature passed significant insurance reforms and established a state reinsurance company. The Florida Insurance Report Card was just issued, and the results were outstanding as follows:

The Florida Office of Insurance says the five largest auto insurers have reduced rates by 6.5% on average this year. Home insurers are also cutting rates, and since January 2024 thirtythree insurers have filed for rate decreases, and seventeen new insurance companies have entered the market.

State Farm is reducing its auto rates by 10% this year. Progressive Insurance plans to send nearly $1 billion of auto refunds averaging about $300 per policyholder. Florida Peninsula Insurance Company, one of the state's largest insurers, recently filed for an 8.4% statewide rate cut on homeowners.

A raft of tort reforms cracking down on lawsuit abuse were also passed, including the elimination of "one-way attorney fees" where plaintiffs could collect massive attorney fees from defendants and their insurers if they win—though not the other way around. Exorbitant medical costs for injuries caused by car accidents were also curtailed.

With FEMA recently announcing a significant restructuring of its claim and refund policies, states like Florida and Louisiana with substantial hurricane disaster exposure could be facing changes in federal disaster support. States are primarily responsible for regulating insurance and liability, and Florida's Report Card shows that they have tackled that responsibility.

This begs the question: what will Louisiana's Insurance Report Card look like in 2027? Inflation and reinsurance problems are not going away, but government handouts from Washington may be. Has the Legislature done enough to regulate Louisiana's insurance and liability going forward? Remember,